Final answer:
It is false that small and medium-sized businesses are very proactive in seeking export opportunities.
While international trade is pivotal for smaller economies, not all businesses have the capacity to engage actively in it.
Those that do can reap considerable benefits, as history has shown with economies that have embraced trade.
Step-by-step explanation:
Many small and medium-sized businesses might not have the resources or expertise to tackle international markets adequately. However, those that can identify and seize these opportunities can experience significant benefits.
International trade can be critical for businesses of all sizes, but it is often more crucial for small countries. Smaller economies tend to benefit more because they typically have limited domestic markets.
Thus, expanding into global markets allows them to access larger customer bases, which can lead to economies of scale and access to resources and technologies that might not be available domestically.
Historically, economies that have embraced international trade, like Japan and the East Asian Tiger economies, have shown impressive growth.
The lesson is clear: being part of the global economy is essential, as seen in the example of the North American Free Trade Agreement (NAFTA). Without active participation in world trade, smaller economies risk stagnation and failing to reach higher standards of living.